In an announcement on Tuesday morning, multinational oil and gas giant, BP Alaska announced the sale of its operations in Alaska to Hilcorp, one of the world’s largest privately-held oil and gas exploration and production corporations for a sum of $5.6 billion.

The sale is to be completed in 2020 and is a part of BP’s intention to rid itself of $10 billion worth of assets in this year and the next. It represents a 49 percent stake in the Trans-Alaska Pipeline, and Alyeska Service Company.

$4 billion of the sale price will be paid at the time of sale while the remainder of $1.6 billion will be paid later.

Governor Dunleavy said in a statement, “Today’s announcement – a passing of the torch within the Alaska oil and gas sector – is significant news for our state, the future of North slope energy production, and the Trans-Alaska Pipeline. While we are only just reading of this announcement, we look forward to learning more and seeing operational details. We welcome Hilcorp to their next phase in Alaska operations and thank BP for their decades-long commitment in bringing Alaska’s mineral wealth to market. As Alaska’s Governor, I will continue pushing to make Alaska ‘Open for Business’ with a vision for new investment, added production, and a regulatory environment that ensures safe and responsible development to Alaska’s fullest potential.”

Senator Murkowski said of the sale, “We thank BP for its long-standing partnership on resource production in our state and for the many significant and lasting philanthropic contributions it has made in our communities,” Murkowski said. “I’m looking forward to learning more details and am encouraged that an enterprising company like Hilcorp sees so much opportunity in Alaska and is willing to make such significant investments in one of the most prolific and under-explored basins in the world. Hilcorp has a strong record of hiring Alaskans and I hope they will continue and strengthen our record of responsible production on the North Slope.”

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